Investment Q&A

Q: Hi, What are your thoughts on the CN Rail's deal to acquire Iowa Northern Railway ? Is it material? Financial terms were not disclosed. The deal is still subject to US STB review. How does this deal position CN Rail against its competitors ? Does it make CNR stock more appealing to buy? Thank You

Q: I already own CNR and ATD and am considering adding CSU and FSV as a couple more "solid additions". Can you please recommend 3 other large cap Canadian growth stocks ? (not including financials, energy, materials, nor Brookfields).

Could you please rank all 7 according to overall long term quality?

Q: Good Morning 5i group. What are your thoughts for a recently retired person who has a large gain on CNR in an RRSP to sell the position tax free and buy an ETF say XEI and essentially triple the income and also diversify the portfolio further ?
Thanks for the great service, a different ETF or investment idea for consideration would be welcomed.

Q: I am wondering about cnr or cp.
Are there any other transportation companies that you find interesting these days?

Q: Thoughts on buying these here in an RRSP or RESP and forgetting about them for a few years ? Any you would change ? Thank you.

Q: Hi Peter and 5i Team,

From this list of 9 stocks to own in a RRSP for 10+ years, how would you rank them in terms of starting a position today?

Thanks again for the great work that you do.

Q: Hi 5i,
I want to add a rail position. What’s your thesis on CNR vs CP?

Thank you!

Q: As a dividend growth investor I'm looking for one more (non-financial) growth company to add to my group that already includes ATD and CNR. I've done a side-by-side comparison of the following three outlining concerns for each:

FSV - Reasonable debt levels. In a recession, perhaps the strongest of the three (?), but always expensive.

SJ - Arguably a bit of a moat, reasonable debt. But by already owning CNR, does it make sense to own a company whose business includes railway ties?

DOO - Great growth, nice dividend growth, and very attractive moat. But what about that debt ?...and in a recession who is going to buy those "toys" ?

Not looking for personal advice, but I would welcome any comments on the concerns I've mentioned. Thanks.

Q: I am trying to construct a barbell style Canadian portfolio.Can you name 5-6 growth names you favour and 5-6 defensive names that I might be able to build this with ?

Q: Please give me your view on Norfolk Southern Corp.

Thank You in advance.

Q: I own CP, CNR, ENB, BCE, in my Rif account and was thinking about selling these to buy UMAX to increase income and keep me in these sectors. They are about 17% of that portfolio and I don't think I am adding risk by doing this but I will be increasing income significantly. Does this move make sense? Thanks, James

Q: Do you consider either railway a good new investment right now? I used your interactive chart to compare the two, and if you bought CNR 10 years ago you are probably pretty happy, but over the last 5 years CP outperformed, and ytd CP has ground up a bit while CN has drifted down. In the current interest rate environment I don’t think anyone is buying either for the dividend? Is there an investment thesis here somewhere or are there just plain better ideas? Thanks for your thoughts.

Q: If you had $20,000 to invest today for and Income with some growth investor in an otherwise well diversified portfolio, what would you pick or just add to?

Q: I did reorganize all my portfolio for a dividend focused portfolio , and already did sell most of the stocks for selected ETFs ,except the 12 stocks mentionned.I wish to only keep 12 "financially safe stocks" on long term + at low risk of dividend cut.If those 12 stocks do not all match this objective,wich ones could be sold and then replaced by what individual stock suggested ? regards,JY

Q: I am looking for a replacement for cae in the industrials. Already own wsp, mg, tfi. Also can you give me 3 or 4 solid companies with little dept and low valuations.
Thanks Steve

Q: What would you consider to be a good entry point for CN Rail at this time? Thank You

Q: Hi Peter, why the sell of on the rails - in particular to CN and CP. Was there any news that affected them directly. Also would you consider them a buy and if so which one would you add. Can you also speak to evaluation. Thank you

Q: I would like to buy a railroad for my son's portfolio. I note the Cdn railroads are currently more expensive on a PE basis than the US rails. This would be a long-term hold (he is 29 yoa, and going into RSP). What would be 5i's preferred choice? If you think CP or CNR, I am not opposed to waiting for a more favourable entry point.

Q: I always thought railways were boring but CNR's chart is quite impressive!

Do you think they may initiate a share split? I think the share price is higher than they have previously allowed before a split. Would now be as good a time as any to step in or what headwinds could they face?

Many thanks!

Q: If I invested in a saving account for my son and daughter in the Royal Bank, Enbridge and Berkshire for 15 years, would this approach work? My daughter is 16 and my son is 14.